Core Insights - Universal Health Services (UHS) reported quarterly earnings of $4.84 per share, exceeding the Zacks Consensus Estimate of $4.36 per share, and up from $3.70 per share a year ago, representing an earnings surprise of 11.01% [1] - The company posted revenues of $4.1 billion for the quarter ended March 2025, which was 1.06% below the Zacks Consensus Estimate, but an increase from $3.84 billion year-over-year [2] - UHS has surpassed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates three times as well [2] Earnings Outlook - The sustainability of UHS's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $4.84 on revenues of $4.21 billion, and for the current fiscal year, it is $18.94 on revenues of $17.12 billion [7] Industry Context - The Medical - Hospital industry, to which UHS belongs, is currently ranked in the top 11% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Industry Overview - The Zacks Medical-Hospital industry consists of for-profit hospital companies providing various healthcare services, including acute care, rehabilitation, and psychiatric care [3] - Revenue generation is influenced by inpatient occupancy levels, medical services ordered, and outpatient procedure volumes [3] - Payments for services come from government programs like Medicare and Medicaid, managed care plans, private insurers, and directly from patients [3] Key Trends Shaping the Hospital Industry - Growing patient volumes are driven by the resumption of elective procedures post-pandemic, with the 65+ age group projected to increase from 17.3% in 2022 to 22.8% by 2050 [4] - Health spending is expected to reach $5.3 trillion by 2025, indicating strong demand for healthcare services [4] - Rising costs are a concern, but programs like the Affordable Care Act are anticipated to support continued growth [4] Managing Cost Pressures - Hospitals are facing rising expenses due to increased patient volumes and higher supply, labor, and benefit costs [5] - Strategies to counter these pressures include improving labor productivity, adopting cost-saving technologies, and enhancing operational efficiency [5] - Stabilizing patient volumes and renegotiated supplier contracts are expected to strengthen cost control [5] Embracing the Digital Shift - The healthcare sector is accelerating the adoption of AI, automation, and real-time analytics to enhance patient care and streamline operations [6] - Telehealth and telemedicine have become essential components of modern healthcare delivery, especially post-pandemic [6] Rising M&A Activity - Mergers and acquisitions are a key growth catalyst, with the industry expected to see continued deal activity driven by capacity expansion and efficiency goals [7] - Economic stabilization is likely to boost confidence in consolidation efforts within the fragmented industry [7] Zacks Industry Rank Shows Promise - The Zacks Medical-Hospital industry currently holds a Zacks Industry Rank of 27, placing it in the top 11% of nearly 250 Zacks industries [9] - Positive earnings outlook and revisions indicate optimism about the industry's growth potential [10] Industry Performance - The Zacks Medical-Hospital industry has outperformed the Zacks Medical sector and the S&P 500, gaining 3% year-to-date compared to the sector's 3.3% decline and the S&P 500's 6.4% fall [12] Industry's Current Valuation - The industry trades at a trailing 12-month EV/EBITDA ratio of 7.48X, significantly lower than the S&P 500's 16.31X and the sector's 10.48X [15] - Over the past five years, the industry has seen an EV/EBITDA range of 6.16X to 9.55X, with a median of 7.99X [15] Company Highlights - **Universal Health Services**: Focuses on acute care hospitals and outpatient centers, with growth driven by rising patient days and an expanding care network [18] - **Tenet Healthcare Corporation**: Operates a broad network of hospitals, with strong revenue growth in its Ambulatory Care segment [22] - **HCA Healthcare**: Positioned for growth with rising patient volumes and expansion into telemedicine [26] - **Community Health Systems**: Focuses on telehealth and hospital acquisitions to enhance specialty services and improve cost efficiency [28]

Core Viewpoint - Universal Health Services, Inc. (UHS) is expected to report first-quarter 2025 results on April 28, 2025, with earnings estimated at $4.36 per share and revenues of $4.14 billion, reflecting year-over-year growth of 17.8% and 7.8% respectively [1][2] Financial Performance - The Zacks Consensus Estimate for UHS's revenues in 2025 is $17.12 billion, indicating an 8.1% year-over-year increase, while the EPS estimate for the current year is $18.94, suggesting a 14% rise year-over-year [2] - UHS has beaten consensus earnings estimates in three of the last four quarters, with an average surprise of 15.5% [2] Earnings Prediction - The current model does not predict a definitive earnings beat for UHS, as it has an Earnings ESP of -0.83% despite holding a Zacks Rank of 1 (Strong Buy) [3] Revenue Segments - The Acute Care Hospital Services segment is projected to generate net revenues of $2.3 billion, reflecting a 7.4% year-over-year growth, with same-facility adjusted admissions expected to grow by 1.6% [6] - The Behavioral Health Care Services segment is estimated to achieve net revenues of $1.8 billion, indicating an 8.2% increase from the prior year, with adjusted patient days expected to rise by 2.8% [8] Cost Pressures - UHS's margins may face pressure due to rising total expenses, particularly from increased salaries, wages, and benefits, which are anticipated to rise by 7.3% year-over-year, alongside supply expenses expected to increase nearly 2% [9]

Core Viewpoint - Growth investors are increasingly focusing on stocks with above-average financial growth, and Universal Health Services (UHS) is highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10]. Earnings Growth - Historical EPS growth for Universal Health Services stands at 5.7%, but projected EPS growth for this year is 14%, surpassing the industry average of 13.8% [5][4]. Asset Utilization Ratio - Universal Health Services has an asset utilization ratio (sales-to-total-assets) of 1.11, indicating it generates $1.11 in sales for every dollar in assets, compared to the industry average of 0.89. Additionally, the company's sales are expected to grow by 8.1% this year, significantly higher than the industry average of 1.1% [7][6]. Earnings Estimate Revisions - The current-year earnings estimates for Universal Health Services have been revised upward, with the Zacks Consensus Estimate increasing by 2.8% over the past month, indicating a positive trend in earnings estimate revisions [8][10].

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies and confidence, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores provide a framework for evaluating stocks based on value, growth, and momentum, aiding investors in selecting securities likely to outperform the market [2] Zacks Style Scores Overview - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A being the highest score indicating a better chance of outperforming [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score identifies undervalued stocks by analyzing financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, helping value investors find attractive investment opportunities [3] Growth Score - The Growth Score assesses a company's financial health and future potential by examining projected and historical earnings, sales, and cash flow, targeting stocks with sustainable growth [4] Momentum Score - The Momentum Score focuses on price trends and earnings outlook, helping investors identify optimal times to invest based on recent price changes and earnings estimate adjustments [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive evaluation of stocks based on value, growth, and momentum, assisting investors in narrowing down their choices [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, ensuring a higher probability of success [9] Stock Highlight: Universal Health Services (UHS) - Universal Health Services Inc. is rated 1 (Strong Buy) on the Zacks Rank and has a VGM Score of A, indicating strong investment potential [11] - The company is projected to achieve year-over-year earnings growth of 14% for the current fiscal year, supported by positive earnings estimate revisions and a consensus estimate increase of $1.25 to $18.94 per share [12]

Wall Street analysts forecast that Universal Health Services (UHS) will report quarterly earnings of $4.36 per share in its upcoming release, pointing to a year-over-year increase of 17.8%. It is anticipated that revenues will amount to $4.14 billion, exhibiting an increase of 7.8% compared to the year-ago quarter.Over the last 30 days, there has been an upward revision of 0.7% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective recon ...

Core Viewpoint - Universal Health Services (UHS) is anticipated to report a year-over-year increase in earnings driven by higher revenues for the quarter ended March 2025, with a consensus outlook suggesting a significant impact on its near-term stock price based on actual results compared to estimates [1][2]. Financial Expectations - The upcoming earnings report is expected to show quarterly earnings of $4.36 per share, reflecting a year-over-year increase of +17.8% [3]. - Revenues are projected to reach $4.14 billion, which is a 7.8% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.73% higher in the last 30 days, indicating a collective reassessment by analysts [4]. - The Most Accurate Estimate for UHS is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.83%, suggesting a bearish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a strong predictive power for positive readings [6][7]. - UHS currently holds a Zacks Rank of 1 (Strong Buy), but the negative Earnings ESP complicates predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, UHS exceeded the expected earnings of $4.19 per share by delivering $4.92, resulting in a surprise of +17.42% [12]. - Over the past four quarters, UHS has beaten consensus EPS estimates three times [13]. Industry Context - Community Health Systems (CYH), a competitor in the same industry, is expected to report earnings of $0.10 per share for the same quarter, marking a year-over-year change of +28.6%, with revenues projected at $3.11 billion, down 0.8% from the previous year [17]. - The consensus EPS estimate for Community Health Systems has been revised 4% higher in the last 30 days, but it also has a negative Earnings ESP of -4.17%, indicating challenges in predicting an earnings beat [18].

Core Viewpoint - The article discusses the effectiveness of a hybrid investing strategy known as GARP (Growth at a Reasonable Price), which combines elements of both value and growth investing, particularly in times of market instability [1][2][4]. GARP Strategy - GARP investing seeks stocks that are undervalued while also having solid sustainable growth potential, utilizing the PEG (Price/Earnings to Growth) ratio as a key metric [4][5]. - A lower PEG ratio, ideally below 1, indicates both undervaluation and future growth potential, making it attractive for GARP investors [6]. Screening Criteria for GARP - Successful GARP investments should meet several criteria, including: - PEG Ratio less than the industry median - P/E Ratio (using F1) less than the industry median - Zacks Rank of 1 (Strong Buy) or 2 (Buy) - Market Capitalization greater than $1 billion - Average 20-Day Volume greater than 50,000 - Percentage Change in F1 Earnings Estimate Revisions (4 Weeks) greater than 5% - Value Score of A or B [8][9]. Selected Stocks - **StoneCo Ltd. (STNE)**: A Brazilian financial technology company with a Zacks Rank of 1 and a Value Score of B, showing a long-term expected earnings growth rate of 26.3% [10][11]. - **BGC Group, Inc. (BGC)**: A global marketplace and financial technology services company, also with a Zacks Rank of 1 and a Value Score of B, and a long-term expected growth rate of 24.7% [12][13]. - **Qifu Technology, Inc. (QFIN)**: An AI-driven Credit-Tech platform in China, holding a Zacks Rank of 1 and a Value Score of A, with a 39.1% earnings growth rate over the last five years [14][15]. - **Universal Health Services (UHS)**: Operates various healthcare facilities, with a Zacks Rank of 1 and a Value Score of A, and a long-term expected earnings growth rate of 16.9% [16][17].

KING OF PRUSSIA, Pa., April 9, 2025 /PRNewswire/ -- Universal Health Services, Inc. (NYSE: UHS) announced today that it will report results for its first quarter ended March 31, 2025, after the market closes on Monday, April 28, 2025. There will be a conference call for investors and analysts at 9:00 a.m. Eastern time on Tuesday, April 29, 2025  A live webcast of the call will be available on the company's website at www.uhs.com. To participate via telephone, please register in advance at this link. Upon re ...

Core Viewpoint - Growth investors are focused on stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Universal Health Services (UHS) is currently recommended due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being highly desirable [3] - Universal Health Services has a historical EPS growth rate of 5.7%, but projected EPS growth for this year is 14%, surpassing the industry average of 13.8% [4] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important metric for assessing a growth stock's efficiency [5] - Universal Health Services has an S/TA ratio of 1.11, indicating it generates $1.11 in sales for every dollar in assets, compared to the industry average of 0.89 [6] Group 4: Sales Growth - Sales growth is another key indicator, with Universal Health Services expected to achieve a 7.7% sales growth this year, significantly higher than the industry average of 1.1% [7] Group 5: Earnings Estimate Revisions - Trends in earnings estimate revisions correlate strongly with near-term stock price movements [8] - The current-year earnings estimates for Universal Health Services have increased by 3.2% over the past month [9] Group 6: Overall Positioning - Universal Health Services has achieved a Zacks Rank 1 and a Growth Score of A, positioning it well for potential outperformance in the market [11]